RVNL wins ₹202.87 Crore bid for Kharagpur-Bhadrak railway substation project

10 Jul 2024 , 10:02 AM

On July 9, Rail Vikas Nigam Ltd (RVNL) emerged as the lowest bidder for a significant project valued at ₹202.87 crore from the South Eastern Railway.

The project scope includes the comprehensive design, supply, erection, testing, and commissioning of a 132 KV traction substation, sectioning posts (SPs), and sub-sectioning posts (SSPs) within the 2x25KV system on the Kharagpur-Bhadrak section of the Kharagpur division.

At the time of writing on July 10, 2024 at 10:00 am shares of Rail Vikas Nigam Ltd (RVNL) is currently trading at ₹592.30 which is a 9.13% surge than the previous close. Rail Vikas Nigam Ltd (RVNL) stock has gained a total of 384% in the last one year, and 225% since the beginning of the year.

RVNL confirmed its status as the Lowest Bidder (L1) in a stock exchange filing, underscoring its commitment to enhancing railway infrastructure and capacity.

The project aims to bolster the railway’s capability to handle 3000 MT of traffic and is slated for completion within a stringent 18-month timeframe.

Concurrently, RVNL witnessed a substantial block deal where 1.4 crore shares, valued at ₹827 crore, changed hands in the stock market. This transaction represented 0.7% of the company’s total equity, with shares trading at an average price of ₹585 each.

As of the March quarter, the Union government holds a majority stake of 72.84% in Rail Vikas Nigam, pending the update of the June quarter’s shareholding pattern.

Recently, RVNL achieved a significant milestone by crossing ₹1 lakh crore in market capitalization on July 5, marking it as the second railway stock after IRFC to achieve this valuation. The current market capitalization stands at ₹1.13 lakh crore, reflecting investor confidence and robust operational performance.